The Artificial Intelligence (AI) has taken a step ahead to make the lives of individuals easy by becoming their shopping companion. Digital tools like Generative AI are increasingly becoming part of the shopping journey.
These tools are helping products and weigh their options, even as their trust in these sources remains low.
As per a report by McKinsey Podcast, trust in generative AI has fallen below 40 per cent.
“We found significant skepticism around algorithm-driven channels like social media, and in particular generative AI, where the trust level is below 40 per cent,” Danielle Bozarth, global leader of McKinsey’s Retail and Consumer Packaged Goods Practices said in an episode of The McKinsey Podcast.
Younger consumers are also showing limited trust in recommendations from family and friends. At the same time, they are drawing on a wider range of information before making purchasing decisions. “While these consumers are bringing more sources of information into their consideration set, they trust those sources significantly less,” Bozarth noted.
“That creates a real challenge for brands and influencers as they try to shape the consumer decision journey.”
The podcast further said these strategies are aimed at helping algorithms understand structured specifications, product details and frequently asked questions. It highlighted four broad trends influencing how consumers shop: a technology-led path to purchase, a broader health revolution, an expanding experience economy and the emergence of the resourceful consumer.
For the latter group, getting value from a purchase is no longer limited to its initial price. Clarisse Magnin, senior partner at McKinsey, said consumers are increasingly considering how useful and durable a product is.
“Resourceful is exactly the right word because consumers are becoming increasingly creative when it comes to getting greater value for their money,” Magnin stated.
“Consumers are evaluating durability, usefulness, repairability, resale value, and other factors. For executives, that means value needs to be designed into the offering from the beginning, not simply added later through promotions.”